Financial support for Covid-19 shoots up US fiscal deficit

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Financial support for Covid-19 shoots up US fiscal deficit





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Medical staff treats patients with Covid-19. Photo Ap


Washington. Massive economic aid from the United States government to households and businesses during the coronavirus pandemic caused the fiscal deficit to skyrocket, Treasury Department data released Monday showed.

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With expenditures of $ 1.1 trillion and falling revenues, the gap for the public finances of the United States in the first nine months of the current fiscal year (which ends in September) shot up 267 percent over the same period of 2019, to reach $ 2.74 trillion, the Treasury reported.

“Pushed by the impact of the Covid-19 crisis and the government’s response, the deficit for June 2020 was $ 864 billion compared to $ 8 billion in June 2019,” the institution said.

Most of this increase ($ 511 billion) is due to the increase in disbursements for aid programs within the framework of a package of 2.2 billion dollars of the so-called CARES law for businesses and companies and direct payments to taxpayers and unemployment benefits.

The figures for this deficit are not surprising, and additional costs are expected under these aid programs in the coming months.

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